Some Russian users seeking to deposit cash or buy digital assets on the crypto exchange Binance today received an error message stating that local bank cards are not now supported. After Russia’s invasion of neighboring Ukraine, several sectors of the economy are experiencing a downturn.
It has been witnessed that some nations including the United States and several EU members issued tough economic penalties against Russia over the weekend. The new sanctions will prevent some local banks from using the Society for Worldwide Interbank Financial Telecommunications, among other things.
Furthermore, in the latest development western step to punish Moscow for its invasion of Ukraine, the US and its supporters have put sanctions on Russia's central bank and sovereign wealth funds, thereby blocking their assets and prohibiting interactions with Russian financial institutions. The sanctions, according to the US Treasury Department, will deny Russian President Vladimir Putin of funding needed to fight the war in Ukraine.
Additionally, these penalties were carefully chosen to avert a German energy crisis, they are already having an impact on Russia's economy. As the ruble falls in value, some users are spending up to $20,000 more for Bitcoin than the market cost. As far as Binance’s action to suspend Russian from buying crypto is concerned, Binance Russia's Telegram support channel, as well as its official Twitter account, have yet to make any related announcements. The exchange's Telegram administrators, on the other hand, state that as of now, Binance is running normally.
Previously, Binance announced that it will block the accounts of sanctioned Russians but will not unilaterally block the account of all Russian users. Binance disclosed that crypto is designed to provide people across the world more financial freedom. To decide unilaterally to deny people access to their crypto would be a direct violation of the purpose of crypto.